A Retail Building Used in the Business of a Sole

question 57

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10, 2018, for $342,000. The building was acquired in 2008 for $400,000 and straight-line depreciation of $104,000 had been taken on the building. What is the maximum unrecaptured § 1250 gain from the disposition of this building?

• A) $400,000
• B) $322,000
• C) $104,000
• D) $26,000
• E) None of the above

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Definitions:

Quantity Enhances Quality

The idea that increasing the amount of something may indirectly improve its quality or value.

Interrogate

To ask questions closely, aggressively, or formally, often for the purpose of obtaining truth or information.

Remuneration

Payment or compensation received for services rendered or work performed.

Terminate

To bring something to an end or conclude its operation.